Frequently Asked Questions
Individual Voluntary Arrangements
Is an IVA the right answer to my debt problem?
When considering an IVA there are very real positives and negatives to consider. Before getting to these however the first factor to consider is whether you can in fact benefit from an IVA. The broad criteria which you need to satisfy is:
- To have at least three people you owe money to (creditors). This can include family or friends.
- When you add up all of your debts you must owe at least £14,000
- Finally you will need to be able to make payments into your IVA of at least £200 per month. If you are looking to put in a lump sum say from a remortgage it may be possible to pay a lower amount.
The key number to bear in mind is that whatever combination of payments you consider you will need to ensure your creditors will get at least 25 pence in the pound after costs. In practice this means you may need to aim to pay your creditors north of 35 pence in the pound to get approval.
Finally you have to want to avoid the consequences of bankruptcy.
Is an IVA the right answer to my debt problem?
When should I consider an IVA?
How much will I need to pay into my IVA?
Will my creditors accept my offer?
What minimum payments do creditors accept into an IVA?
Will I really be debt free at the end of an IVA?
Will I be able to borrow money during the IVA?
What happens if I get a big pay rise or win the lottery or some other type of windfall?
Will people know about my IVA? Will it go into the local papers? Will my employer know?
How difficult will it be to get credit again?
Will an IVA cost me more than going bankrupt?
My wife or partner has debts but their debt is under control. Will they need to pay into my IVA?
What fees do you charge and how do you get paid?